Annual report pursuant to Section 13 and 15(d)

PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT

v3.24.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT
 12 Months Ended
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT

4. PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT

 

    December 31, 2023     December 31, 2022  
Deposits   $ -     $ 12,000  
Legal retainer     8,039       24,457  
Prepaid expenses     223,624       436,496  
Inventory advances     30,654       -  
Deferred offering costs     -       100,337  
Others     10,555       25,052  
Prepaid expenses, other current assets   $ 272,872     $ 598,342  

 

On August 31, 2022, the Company signed a purchase and sale agreement with Stronghold Power Systems, Inc. (“Stronghold”), to purchase approximately seventy acres of land located in the City of Coachella as well as the completion of certain permitting, zoning, and infrastructure work by Stronghold for a total purchase price of $4,300,000. The purchase price consists of:

 

  (i) $1,500,000 in cash due on March 31, 2023.
     
  (ii) A first stock deposit of $1,700,000 in prefunded warrants. The Company issued 13,917 prefunded warrants on September 9, 2022 to Stronghold.
     
  (iii) A second stock deposit $1,100,000 in prefunded warrants. The Company issued 9,005 prefunded warrants on September 9, 2022 to Stronghold.

 

At December 31, 2022 the $2,085,960 of prefunded warrants were recorded under land deposit in relation to the Stronghold agreement.

 

On March 31, 2023 the prefunded warrants issued were rescinded and the warrants were rendered null and void as the Company presented a termination notice to Stronghold and the value under land deposit was also reversed.